Investors are turning to exchange traded products (ETPs) in record numbers, according to data from BlackRock.
Global ETP market inflows reached a record $262.7 billion in 2012, driven by regional regulatory developments, deepening ETP liquidity and increasing awareness of the products.
BlackRock's iShares business captured $83.3 billion of new flows out of ETP market flow.
iShares global head Mark Wiedman said fixed income was a key driver of flows globally, as investors of all kinds increasingly adopted exchange traded funds (ETFs) as an essential instrument for accessing the bond markets.
"iShares captured $28.8 billion globally, or 41 per cent, of all new flows into fixed income ETFs."
iShares global assets under management (AUM) reached $758.6 billion as of the end of 2012.
While all global regions contributed to the growth, the US product line reached a record $61 billion of new assets, surpassing the 2007 record of $59.1 billion.
In Europe, iShares captured 56 per cent of all new net flows entering European ETPs, with $18.3 billion in net flows being recorded over the year.
With the alternative investments predicted for 2013 throughout the Asian Pacific region, iShares has predicted that ETP investment will continue to boom.
"Asian investors are expected to continue to seek income and yield in different places, driving growth in fixed income products," iShares head of Asia Pacific Jane Leung said.
"We expect assets under management and trading volumes in ETFs to grow significantly in Asia Pacific as a result."
